ED Searches Offices of Indian Crypto Exchange CoinSwitch Kuber
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CoinSwitch Kuber Received Government Queries
Commenting on ED raids, a CoinSwitch Kuber spokesperson said,
"We receive queries from various government agencies. Our approach has always been that of transparency. Crypto is an early stage industry with many potentials, and we continuously engage with all stakeholders."
Top CoinSwitch Kuber executives quit the company in July. Sharan Nair, the chief business officer, and Krishna Hegde, the chief financial officer, and a senior executive are among those who have left the organization.
Over 18 million people have enrolled on CoinSwitch, supported by companies like Andreessen Horowitz and Sequoia Capital India. On its platform, cryptocurrency worth over Rs 1 lakh crore has reportedly been traded.
Other Troubled Indian Cryptocurrency Platforms
In addition, Singaporean cryptocurrency lender Vauld is seeking legal advice in the continuing situation where ED has issued a freezing order. The news comes after ED froze the bank account of one of the directors of WazirX operator Zanmai Lab Private Ltd. According to the source, ED is looking into shady peer-to-peer (P2P) transactions, and the probe showed their (KYC) to be either fraudulent or doubtful in more than 80% of cases.
According to the source, "the agency judged them to be in breach of section 11(A) of the PMLA Act, which requires every reporting body to confirm the client's identification."
The investigating agency reportedly keeps tabs on fintech partners of speedy loan apps and non-banking financial institutions that operate beyond central bank regulations. The third platform under investigation for laundering illegal loan application profits is CoinSwitch at this time.